Category Archives: Risk and risk management

Supervising Culture and Behavior at Financial Institutions

Financial regulators increasingly acknowledge organizational culture as a source of systemic risk, yet they have been loath to do more than influence compensation structures, since they do not want to be perceived to be interfering with management. This post describes a new approach in the Netherlands that

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Why is China finding it hard to fight the markets?

China’s market drama started in June this year with the collapse of the Shanghai stock exchange, followed by frantic interventions by the Chinese authorities. As if the estimated $200 billion already spent on propping up stock prices were not enough, China found itself in another battle with the market, defending the RMB against depreciation pressures after the PBoC devalued the RMB by nearly 2% on August 11. The cost of the foreign exchange intervention to keep the RMB stable is estimated at $200 billion.

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Wolf Richter: Foreign “Smart Money” Frets about Turmoil at Home, Flees, Plows into US Housing Bubble 2, Thinks it’s a “Safe Haven”

Lambert: Just what we need; more 1%-ers. And if turmoil in emerging markets keeps up, we’ll have more of ’em, as conditions “at home” sharpen. By Wolf Richter, a San Francisco based executive, entrepreneur, start up specialist, and author, with extensive international work experience. Originally published at Wolf Street. Wealthy, very nervous foreigners yanking their money […]

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